Crypto Exchange Bithumb’s Plan to Go Public in South Korea
Bithumb, a popular cryptocurrency exchange, is gearing up to become the first digital asset company to go public on the South Korean stock market. The plan involves an initial public offering (IPO) on the KOSDAQ, South Korea’s equivalent of the United States Nasdaq, with an expected listing date set for sometime in the second half of 2025.
The exchange has selected Samsung Securities as its potential IPO underwriter, though it has not confirmed whether the IPO is definitely going ahead. Bithumb’s former chairman Lee Jeong-hoon has returned to the company as its registered director, while CEO Lee Sang-jun was excluded from a place on the board of directors due to an ongoing investigation into alleged bribery.
The move to go public is reportedly driven by a desire not to lose further market share to Upbit, currently the largest crypto exchange in South Korea.
Controversies and Legal Issues
In recent years, both Upbit and Bithumb have faced unwanted attention and legal scrutiny. In May, South Korean authorities raided their offices over allegedly fraudulent crypto trading on behalf of a local lawmaker. In February, one of Bithumb’s largest shareholders was arrested on embezzlement charges following a lengthy police investigation into his allegedly illicit behavior.
Despite these controversies, Bithumb remains the second-largest crypto exchange in South Korea by daily trading volume, trailing behind Upbit. It was founded in 2014 and had a 24-hour trading volume of roughly $580 million at the time of publication according to CoinGecko data.
Hot Take: Bithumb’s Bold Move Towards IPO
Bithumb’s decision to pursue an IPO marks a significant milestone in the cryptocurrency industry and could potentially set a precedent for other digital asset companies. Despite facing legal challenges and competition from Upbit, Bithumb’s move reflects its confidence in its position within the market and its long-term vision for growth and sustainability. As regulatory scrutiny continues to increase globally, going public could also be a strategic way for Bithumb to enhance transparency and credibility within the industry.
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